Former Sen. Tom Daschle (D-S.D.) withdrew Tuesday from consideration as Department of Health and Human Services Secretary, according to a White House statement. The withdrawal follows a Senate Finance Committee vetting review that revealed Daschle had tax violations. Daschle, viewed as an advocate for healthcare information technology, was a highly favored candidate across party lines and also had been tapped to be the White House healthcare czar.

According to the Senate Finance Committee, Daschle failed to pay a portion of his taxes for 2005, 2006 and 2007. He filed amended tax returns this January for those years, reporting $128,203 in additional tax and $11,964 in interest. The adjustments resulted from additional income for consulting services and the use of a car service, and reductions in charitable contribution deductions. The Senate Finance Committee later discovered Daschle had also neglected to pay Medicare taxes on the undisclosed income.

President Obama said in a statement that he accepted Daschle's decision "with sadness and regret."

"Tom Daschle has devoted his life to public service and healthcare reform, so that every American has access to healthcare they can afford. I had hoped that he could bring this passion and expertise to bear to finally achieve that goal, which is so essential to the progress of our economy and the well-being of businesses and families across our nation," Obama wrote."Tom made a mistake, which he has openly acknowledged. He has not excused it, nor do I."

"But that mistake, and this decision, cannot diminish the many contributions Tom has made to this country, from his years in the military to his decades of public service. Now we must move forward, with our plan to lift  this economy and put people back to work," Obama said.

Daschle filed amended tax returns voluntarily after Obama announced his intention to nominate the senator to be HHS Secretary. The presidential transition team identified the charitable contribution issue and Daschle self-identified the income adjustments, a committee statement said.

In a Tuesday statement, Daschle said, "To be chosen by President Obama to run the Department of Health and Human Services and to lead the reform of America's health care system is one of the signal honors of an improbable career. But if 30 years of exposure to the challenges inherent in our system has taught me anything, it has taught me that this work will require a leader who can operate with the full faith of Congress and the American people, and without distraction."

Daschle said, "Right now, I am not that leader, and will not be a distraction. The focus of Congress should be on the urgent business of moving the president's economic agenda forward, including affordable healthcare for every American. We need the best care in America to be available to all Americans. We need this effort to succeed. Lives and livelihoods are at stake. I will not be the architect of America's health system reform, but I remain one of its most fervent supporters."